Companies see the light on energy retrofits

The number of fluorescent bulbs has been cut by 50 percent in the training room of Life Time Fitness in Chanhassen. “A lot of lighting projects can pay for themselves quickly,” says Dan Thiede of the Clean Energy Resource Team. (Staff photo: Bill Klotz)

Some upgrades can pay for themselves in a couple of years

If you own a small business — especially one with a warehouse, manufacturing plant or other facilities — odds are the energy usage of your buildings is among the last things on your mind day to day. After all, once lights, boilers and HVAC equipment are installed, all that’s important is that they work, right?

But there’s a growing awareness of not just tracking how much energy your facilities use but also being proactive about when and how extensively to retool your energy setup. According to a recent survey from Pike Research, an energy-efficiency retrofit in a typical commercial building can lead to energy savings from 10 percent to 50 percent. What’s more, an energy retrofit can lead to reduced greenhouse gas emissions and increased property valuation.

“With incentives from the utility companies the way they are, and with the enhanced awareness we’re seeing, companies are becoming more and more receptive,” said Wendy Fry, vice president of sales and marketing for the Little Canada-based Retrofit Cos., which specializes in lighting retrofits. “In the past, some people bought into it, and some people thought it was snake oil. But I’d say most companies are open to the idea now.”

An energy retrofit can be done at a variety of levels. Conventional energy retrofits focus on isolated system upgrades, such as replacing lights and HVAC equipment. More in-depth overhauls cost more but also bring greater energy efficiency by retrofitting entire facilities from the ground up.

“If your company is large enough to have a facilities manager, you’re probably more aware of the options and opportunities out there,” said Carl Nelson, program and policy manager at the Center for Energy and Environment, a Minneapolis nonprofit that provides energy solutions for homeowners, businesses, nonprofits and government entities.

At one end of the scale are relatively simple procedures such as having windows or lights replaced. Both the Retrofit Cos. and the Center for Energy and Environment offer a free service in which representatives will check your building’s lights to see if they are as efficient as possible.

Fry said business owners and even facilities managers are often unaware of evolving new standards in lighting efficiency. For instance, thicker fluorescent lamps known as T12 lamps are being phased out in favor of the more efficient T8 lamps. The U.S. Department of Energy has mandated that T12s can no longer be sold by distributors after June.

“A T12 runs on a magnetic ballast, so it’s not as efficient and the light isn’t as good,” Fry said. “That’s just one of those things that most business owners don’t have the time to stop and think about.”

Utility companies try to make upgrades as appealing as possible through incentive programs. For instance, Minneapolis-based Xcel Energy is offering bonus rebates for businesses that upgrade from T12 to T8 lighting. (While a rebate of 50 percent was good through the end of March, the maximum rebate now is 30 percent.)

Xcel also offers a one-stop efficiency lighting program that helps small business owners make lighting improvements when they have limited time and financial resources.

The Minnesota Pollution Control Agency also offers its Retiree Environmental Technical Assistance Program (RETAP), in which skilled retirees assess business facilities free of charge. Minnesota WasteWise’s EnergySmart program also offers a free on-site energy consultation.

“I would start by talking to your local utility,” said Dan Thiede of the Clean Energy Resource Team, a public-private partnership devoted to clean energy initiatives. “A lot of them offer technical assistance and rebate programs. They can talk about how energy-efficiency measures can impact your utility bills. They can also talk about businesses in the area and what they’ve done to save money.”

The improvements in lighting efficiency make a lighting upgrade one of the most cost-effective retrofits to undertake. Nelson and Fry said that between rebates and incentives from utilities, most lighting retrofits can pay for themselves within a few years.

“The return on investment varies by industry and how much you have done,” Thiede said. “A lot of lighting projects can pay for themselves quickly, especially if you get rebates — sometimes two years or less.”

In fact, once they’re given a bottom-line look at what an energy retrofit can do, many business owners can’t sign up fast enough, Nelson said.

“Business owners are always interested in saving money. That’s still the primary driver.”